Question 1

What is the Capital Gains Tax allowance?

Accepted Answer

The annual exempt amount is the slice of total gains you can realise tax-free in a tax year. For the 2026/27 tax year it is £3,000. Only the gain above that figure is potentially taxable, and gains inside an ISA or pension are exempt entirely.

Question 2

How much is the dividend allowance?

Accepted Answer

The dividend allowance lets you receive £500 of dividends tax-free in the 2026/27 tax year, on top of your Personal Allowance. Dividends above it are taxed at the dividend rates, which depend on your income tax band. Dividends from shares held in an ISA or pension do not count.

Question 3

How is this tool calculated?

Accepted Answer

It compares the realised gains and dividend income you enter against the current annual allowances and shows how much allowance is left and how much sits above it. It is an allowance-position checker - it does not calculate your share pools, acquisition costs or the exact tax due, because those depend on your full records and income.

Question 4

Why does the tool not show the tax I owe?

Accepted Answer

The rate on taxable gains and dividends depends on your other income for the year, and gains can span different rates. Rather than guess, the tool focuses on your allowance position so you can see what is sheltered and what is exposed, then confirm the precise tax with HMRC or an adviser.

Question 5

How can I reduce CGT and dividend tax?

Accepted Answer

Common, legitimate steps include using ISA and pension wrappers so future gains and dividends are sheltered, spreading disposals across tax years to use more than one annual allowance, and making use of a spouse or civil partner's allowances. The right approach depends on your circumstances.

What’s left of your CGT & dividend allowances?

Shelter more, by design

Common questions